Gwangyang Free Economic Zone Authority Seeks Crisis Response Measures During Chemical Industry Visit

Listening to the Current Status and Difficulties of Anchor Chemical Companies through On-site Visits

Gwangyang Bay Area Free Economic Zone Authority (Commissioner Koo Chung-gon, hereinafter referred to as Gwangyang FEZ Authority) visited major chemical companies within the Gwangyang Bay Area Free Economic Zone to listen to the industry's current situation and difficulties, and to discuss response measures amid the ongoing crisis in the chemical industry.

Recently, the chemical industry as a whole has been facing a crisis due to the global economic slowdown, supply chain instability, and fluctuations in raw material prices. In particular, domestic chemical companies are experiencing deteriorating profitability due to oversupply and decreased demand resulting from China's production expansion, and the burden on businesses is increasing further with rising inflation.

Gwangyang Free Economic Zone Authority building.

In response, Gwangyang FEZ Authority visited chemical companies located in the Gwangyang Bay Area, including GS Caltex, Kumho Petrochemical, and Lotte Chemical Yeosu Plant, to hold meetings with company representatives.

During these meetings, the companies expressed difficulties caused by increased fixed costs and requested expanded support from the government and local authorities. They explained that the significant increase in electricity rates this year, along with regular facility investment costs, account for a large portion of their operating profits, posing a major management burden. They also pointed out the urgent need to resolve infrastructure issues in the Yeosu Chemical Industrial Complex, such as a shortage of industrial water, high land prices, and aging roads with insufficient maintenance.

Based on the suggestions gathered during these consultations, Gwangyang FEZ Authority plans to establish practical support measures and actively seek joint response strategies to the global chemical industry crisis.

Koo Chung-gon, Commissioner of Gwangyang FEZ Authority, stated, "We will continue on-site consultations to address the difficulties faced by resident chemical companies and do our utmost to respond effectively to the industry crisis."